Fossil Group Inc. (FOSL), the maker of watches and other accessories, tumbled as much as 7.6 percent in late trading after its second-quarter forecast trailed analysts’ estimates.
Earnings will be 90 cents to 97 cents a share in the period, the Richardson, Texas-based company said today in a statement. Analysts had projected $1.16 on average, according to data compiled by Bloomberg. The company predicted sales growth of 8 percent to 9.5 percent, just short of the 10 percent average estimate.
The forecast raised concerns that Fossil’s growth is ebbing following a 14 percent sales gain last quarter. While the company cited “strong performance” in its watch business, sales of leather products are suffering. The company also faces a slowdown in U.S. mall traffic.
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